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The Financial Supervisory Authority requires 5 years of experience for directors of direct investment companies


Dr. Muhammad Omran, Chairman of the Financial Supervisory Authority, issued Resolution No. 95 of 2021, amending the Authority’s Board of Directors Decision No. 149 of 2018, regarding the requirements and conditions for obtaining a license to engage in direct investment activity.

 

The first article stipulated, in the decision published in the Official Gazette in its issue No. 146 of 2021, today, Wednesday, that the sixth clause of Article One of the Authority’s Board of Directors Decision No. 149 of 2018 regarding the requirements and conditions for obtaining a license to engage in direct investment activity shall be replaced by the following item (Article One) - Item Six: The responsible manager (partner or general partners) in companies licensed to engage in investment activity must have at least 5 years of experience in finance, stock markets and financial institution management, and this period is reduced to 4 years for those who passed The success of the training courses in the field of stock markets approved by the Authority.

 

He added: “If the general partner did not fulfill the period of experience required by this clause and was affiliated with an Egyptian or foreign company, then it is required that the parent company to which the general partner is affiliated be subject to a supervisory authority with the authority’s jurisdiction when it is a foreign company, and that it commits to providing the general partner with a work team. It is based on investment management and meets the conditions of experience and competence specified in this clause.

 

The Financial Supervisory Authority had issued a decision obligating companies that obtained a license to engage in a non-banking financial activity to notify the authority before it made any amendment to the formation of its boards of directors, and after two weeks without a response from the authority, it constituted approval of this amendment.

 

The Financial Supervisory Authority, headed by Dr. Mohamed Omran, also approved the establishment of The Pyramid Private Equity Co., a partnership limited by shares, as the first company in the Egyptian market to invest in companies and small and medium enterprises under that newly developed mechanism.

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